Hi there! Looking for advice on how to approach our small bathroom remodel in our 1960's ranch home. The walls had 3 layers of wallpaper and the top 2 were peeling, so I removed as much as I could of the top 2 layers. The walls are in poor condition with a few screws that had to be cut off (they were badly stripped) where a safety bar had been installed vertically on the wall. The whole bathroom needs redoing for sure, but I'm not sure what the best approach for the walls will be. Do we skim coat the walls or just gut it all and put up fresh drywall? Either option would be contracted out as we have neither the skill nor the time right now with 2 young kids.

Room is about 40 sq ft so my concerns are most cost efficient but also if we hired someone to skim, could they do a great job as I know it can be harder to get quality pros for such small jobs.